Types of IRAs

The most common types of Individual Retirement Accounts (IRAs) are Traditional, Roth, SEP and SIMPLE. Traditional and Roth IRAs are available to all individuals, while SEP IRAs are available to anyone who is self-employed. Each type of IRA has different eligibility and tax rules.

With a Traditional IRA, contributions are tax-deductible (for many people) and only subject to income taxes at the time of withdrawal. The main advantage of a Traditional IRA (compared to a Roth IRA), is that you may be able to save on your taxes today by deferring those taxes until retirement.

Is a Traditional IRA right for you?
A Traditional IRA may be a good option for you if:

A Roth IRA is an individual savings account in which your contributions are not tax-deductible, earnings accumulate tax-free, and qualified withdrawals are tax-free. This means that, although you don't receive a tax deduction now, you won't need to pay taxes on the earnings when you make a qualified withdrawal.

A Simplified Employee Pension Plan, otherwise known as a SEP IRA, is a retirement plan specifically designed for anyone with self-employment income (for example, self-employed individuals and small business owners). A SEP IRA can help you contribute to your retirement savings while reducing your taxable income.

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Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

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Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.